Here is a summary of the programs that may become available to assist various housing and urban development programs through the Economic Stimulus package:
Housing and Urban Development
Public Housing Capital Fund
This funding will allow Public Housing Authorities (PHAs) to complete repair and construction projects. Specifically:
- $4 billion of the funds will be distributed to PHAs through the existing formula
- $1 billion will be awarded through a competitive process for projects that rehabilitate units to improve energy efficiency, increase affordable housing projects that are ready-to-go and address the housing needs of senior citizens and persons with disabilities.
Elderly, Disabled and Section 8 Assisted Housing Energy Retrofit
Funding will be awarded competitively to renovate and retrofit federally-assisted housing, including Housing for the Elderly (Section 202), Housing for Persons with Disabilities (Section 811) and Project-Based Section 8 units. These units are aging and in need of energy efficiency retrofits, which will reduce the carbon footprint, as well as reduce the utility bills for the residents of these homes. Details of this provision include:
The loans or grants shall be provided through the Office of Affordable Housing Preservation of the Department of Housing and Urban Development.
Eligible owners must have at least a satisfactory management review rating, be in substantial compliance with applicable performance standards and legal requirements, and commit to an additional period of affordability determined by the Secretary.
The Secretary may provide additional incentives if such investments resulted in extraordinary job creation for low-income and very low income persons.
Department of Agriculture
Rural Housing Service: Rural Housing Insurance Fund
This existing USDA program provides individuals with the opportunity to become homeowners in rural communities through utilizing either the guaranteed loan program or the direct housing loan program. The legislation provides for $270 million in direct loans and $230 million for unsubsidized guaranteed loans. Estimates show that this level of funding would provide for an additional 192,000 homeowners.